TTML.NS
Tata Teleservices (Maharashtra) Ltd
Price:  
55.61 
INR
Volume:  
2,206,583.00
India | Wireless Telecommunication Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

TTML.NS WACC - Weighted Average Cost of Capital

The WACC of Tata Teleservices (Maharashtra) Ltd (TTML.NS) is 10.1%.

The Cost of Equity of Tata Teleservices (Maharashtra) Ltd (TTML.NS) is 14.15%.
The Cost of Debt of Tata Teleservices (Maharashtra) Ltd (TTML.NS) is 11.30%.

Range Selected
Cost of equity 11.10% - 17.20% 14.15%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.00% - 18.60% 11.30%
WACC 5.7% - 14.5% 10.1%
WACC

TTML.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.51 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 17.20%
Tax rate 30.00% 30.00%
Debt/Equity ratio 1.88 1.88
Cost of debt 4.00% 18.60%
After-tax WACC 5.7% 14.5%
Selected WACC 10.1%

TTML.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for TTML.NS:

cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.